The incurred claims ratio rose to 94.47 percent in Q4FY18 as against 69.97 percent a year ago.
State-owned reinsurance company General Insurance Corporation of India (GIC Re) posted a 71 percent year-on-year YoY drop in its March quarter net profit at Rs 751.6 crore, due to an underwriting loss of Rs 1,219.06 crore.
The reinsurer had posted a net profit of Rs 2,572.83 crore in the fourth quarter of FY17.
The incurred claims ratio rose to 94.47 percent in Q4FY18 as against 69.97 percent a year ago.
Consequently, the combined ratio rose to 116.57 percent in Q4 as against 89.05 percent. A combined ratio above 100 percent indicates that a company's claims payment amount exceeds premiums collected.
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Fire was the largest segments in terms of income, followed by motor, health, and agriculture. The underwriting loss for agriculture was at Rs 1,358.12 crore in Q4 compared to Rs 613.85 crore profit last year while the loss for motor was at Rs 569.59 crore compared to Rs 317.28 crore loss YoY.
The gross premium rose by 24.5 percent YoY to Rs 41,799.37 crore for FY18. Of this, 71.32 percent was domestic business while 28.68 percent constituted the international business.
The company in a statement said 2017 saw record insured losses from global catastrophe events. The included catastrophe losses through in Harvey, Irma and Maria hurricanes in the USA and the Caribbean alongside Mexican earthquake and California wildfires. This, said GIC Re, hit the insurance and reinsurance industry profitability in a major way.